04.08.2024

In which European countries do employers have to pay for public transport?

Transport remains one of the most problematic sectors for Europe's environmental ambitions. The industry generates a quarter of the EU's emissions and is one of the few to see emissions rise in recent years, reports Euronews.

With ambitious climate targets, more needs to be done to change the way people and goods move.

The logical question is, is there a move that can encourage the abandonment of private cars and at the same time cost almost nothing to the taxpayer?

Just such a measure has been introduced by several European countries in recent years.

In an attempt to increase the attractiveness of sustainable transport and ease the financial burden on citizens, some European governments have made employers pay for public transport.

This is usually done with the following scheme – the employee pays for his subscription plan for public transport (monthly or yearly), after which the company reimburses him when an invoice is presented.

But different rules exist in different European countries. Let's take a look at some of the best schemes available across the continent.

In Belgium and France, most of the costs are covered

Belgium has an extremely generous reimbursement scheme for public transport.

There is a mandatory minimum of 75 percent which is covered by the employer. In a city like Brussels, where a monthly card costs 50 euros, this means that you will only have to spend 12,50 euros per month to have access to all metro, tram and bus lines.

Just across the border, Belgium's neighbor France also has a national mandatory reimbursement rule. French employees are entitled to a minimum of 50 percent of their public transport costs.

Moving to Central Europe, Slovenian employers have to cover the costs of employees' travel to and from work. This is done in accordance with collective agreements at workplaces and usually takes the form of paying public transport tickets or a fixed amount per kilometer for people traveling by car.

Where in Europe is there free public transport?

In Austria, public transport is now free for all employees working for the city of Vienna. Non-municipal employees are entitled to reimbursement of their travel expenses from home to work in the form of tax relief of up to €463, regardless of the type of transport used.

Of course, there are some places that have taken it a step up. Luxembourg has free public transport without restrictions since 2020. Large cities such as Montpellier in France and the capital of Estonia, Tallinn, also rely on completely free public transport.

On the other hand, there are also many countries where there is no legal obligation to cover transport costs, but nevertheless many companies, especially the more important ones in big cities, take it. This is the case in places like Italy, Poland, Germany and the Netherlands.

What is the benefit for employers?

Cheaper public transport for workers is not only good for the environment. It could also be a good way to attract and retain staff. As office culture has declined in recent years, providing incentives to employees can encourage them to come to the office more often.

The scheme could also encourage more workers to use public transport and thus reduce the number of parking spaces a company needs, which could save money.

Some European countries offer "climate tickets" that allow unlimited travel around the country on regional trains as well as urban public transport. This can reduce the amount of travel expenses that need to be incurred for business trips.

Less use of private cars can also help reduce air pollution and make cities healthier and safer for residents.